Interest rates to be lowered if inflation decreases: Governor

Bangladesh Bank Governor Ahsan H. Mansur has stated that inflation will drop below 5% if given time. However, interest rates will be reduced once inflation falls below 7%.

He made this remark as the chief guest at an event organized by the Economic Reporters Forum (ERF) on Thursday (February 20).

The event took place at the ERF auditorium in Paltan, Dhaka.

Governor Ahsan H. Mansur emphasized that the central bank will focus on compliance, regulation, and enforcement. He stressed the need for skill development and training, highlighting the shortage of skilled professionals in Bangladesh. He also expressed hope that the next government will continue the initiatives already undertaken.

He further stated that remittance inflow is increasing, which has contributed to a slight improvement in the country’s foreign reserves. The dollar market remains stable. However, he noted that a syndicate in Dubai is controlling the remittance market. Although only a small number of Bangladeshis reside in Dubai, a significant portion of remittances is coming from there, indicating the presence of an active syndicate.